On May 14, Alibaba fell 3.31% in regular trading, trading at $140.43/share, with trading volume of $282 million, as the market reacted negatively to its latest quarterly results.
On May 13, Alibaba reported financial results for the quarter ended March 31. Total revenue came in at RMB 243.38 billion, representing a modest 3% year-over-year increase. However, the more closely watched profitability metric — adjusted EBITA — dropped sharply by 84% year-over-year to just RMB 5.102 billion, signaling significant margin compression. The steep decline in operating earnings raised concerns about heavy spending, particularly on AI-related investments and cloud infrastructure buildout, which appear to be weighing heavily on near-term profitability.
On a brighter note, Alibaba's earlier strategic investments in AI startups such as MiniMax and Zhipu are beginning to yield returns. Based on prior disclosures, Alibaba holds approximately 36% preferred equity in Moonshot AI (Yuezhi Anmian). Nonetheless, the dramatic profitability decline overshadowed these gains and drove selling pressure in the stock.
Within the Broadline Retail sector, overall sentiment was weak. Among peers, Amazon.com fell 0.12%, PDD Holdings fell 1.83%, JD.com fell 1.04%, MercadoLibre fell 0.65%, and Sea Ltd fell 2.6%.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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